Application of real options theory to DoD Software Acquisitions
Loading...
Authors
Mun, Johnathan.
Shing, M.
Subjects
Risk management.
Software engineering.
Software engineering.
Advisors
Date of Issue
2009-02-20
Date
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
The traditional real options valuation methodology, when enhanced and properly formulated around a proposed or existing software investment employing the spiral development approach, provides a framework for guiding software acquisition decision-making by highlighting the strategic importance of managerial flexibility in managing risk and balancing a customer's requirements within cost and schedule constraints. This article discusses and describes how an integrated risk management framework based on real options theory, could be used as an effective risk management tool to address the issue of requirements uncertainty as it relates to software acquisition and guide the software acquisition decision-making process.
Type
Technical Report
Description
Series/Report No
Department
Computer Science
Identifiers
NPS Report Number
NPS-CS-09-005
Sponsors
Funder
Funding number: DWAM80020.;Project number: F08-023.
Format
iv, 35 p.: ill. (chiefly col.);28 cm.
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.